Bitcoin bears get a sudden roasting as a short squeeze sends BTC price action to levels last seen before the Binance regulatory debacle.
Bitcoin (BTC) returned to $28,000 on March 29 as a classic short squeeze took the market to five-day highs.
BTC liquidations mount as Bitcoin reverses Binance dip
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD hitting $28,159 on Bitstamp.
The abrupt uptick came courtesy of exchanges, where a band of shorts was “blown out” to remove resistance and allow higher levels to return.
As noted by the analyst, Skew, these shorts were left over from Bitcoin’s prior moves and were worth around 1,500 BTC.
“Looks like the previous bounce was shorted heavily & those shorts just got blown out,” part of the accompanying commentary stated.
According to analytics resource Coinglass, total BTC short liquidations for March 29 stood at nearly $20 million at the time of writing.
Monitoring resource Material Indicators noted additional changes on the Binance spot order book.
Related: US enforcement agencies are turning up the heat on crypto-related crime
In anticipation of the March 31 macroeconomic data print from the United States, traders appeared to be preparing for potential buying opportunities should the downside enter again.
“Meanwhile price is pumping. If bulls run out of momentum before clearing $28k, things may get spicy,” comments acknowledged.
#FireCharts shows ~$25M in #Bitcoin bid liquidity that was stacked above the 200 Week MA, was moved down to ~$23.3k, presumably to defend the Monthly Close coming Friday after a fresh PCE report.
Meanwhile price is pumping.
If bulls run out of momentum before clearing $28k,… pic.twitter.com/oZpQPdql12
— Material Indicators (@MI_Algos) March 29, 2023
Bitcoin faces “serious ask liquidity” before $30,000
BTC price action thus effectively erased any trace of losses engendered by news that largest exchange Binance was being targeted by U.S. regulators.
Related: Bitcoin is 1 week away from ‘confirming’ new bull market — analyst
Previously, consensus favored a return to test lower support levels for BTC/USD, this focusing principally on the 200-week moving average at around $25,500.
Skew meanwhile acknowledged that in order for short-term upside to continue, bulls would need to muster some serious buying power
“Thick ask liquidity between $28K & $30K Would need some sizeable market buying to push through here,” a further tweet read.
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